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City Council rejects proposed water-rate increase; staff told to identify $20 million in cuts
Summary
On first reading council declined the water-rate ordinance proposed for FY26. Councilmembers and staff said rejecting the rate requires about $20 million in operating reductions, including possible elimination of 86 positions and cuts to maintenance and chemical treatments that could affect water quality and service.
Corpus Christi City Council on Tuesday rejected a proposed set of water-rate increases intended to cover rising operating costs and long-term debt, leaving staff to identify roughly $20 million in cuts to balance the utilities fund.
The council voted against the ordinance that would have raised rates for inside-city customers, wholesale and large-volume users and added a 75¢ charge for the first 2,000 gallons of residential usage. Andy McCartney, the consultant from NewGen who led the rate study, told the council the proposal was designed to meet the utility’s business needs, including debt-service coverage and operating reserves.
The rates presented would have raised the raw-water charge from $0.95 to $1.18 per thousand gallons, added a 75¢ charge on the first 2,000 gallons of residential use (a proposal the study team reduced from a $1 proposal after stakeholder feedback) and increased volumetric and minimum charges for several customer classes. McCartney said the changes reflected large upcoming raw-water supply costs and a three-year phase-in…
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